Assessing Polygon’s state ahead of USDC’s integration
Journalist
Posted:
- Polygon’s USDC integration will have quite a few benefits, such as support by Circle Account and its APIs.
- MATIC was up by more than 3% in the last 24 hours, and metrics were optimistic.
Polygon [MATIC] recently revealed that USD Coin [USDC] will soon launch on its PoS chain. While the blockchain worked on integrating a new stablecoin, its native token’s price action turned bullish, thanks in part to the current market condition.
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Polygon to integrate USDC
As per the latest announcement, native USDC will launch on Polygon PoS on 10 October. This will initiate a transition away from bridged USDC for ecosystem apps, developers, and users.
October 10th – save the date. Native $USDC will launch on Polygon PoS.
Native USDC, issued by @circle, will be the official form of USDC for the Polygon PoS ecosystem.
The benefits?
– Fully reserved & always redeemable 1:1 for US dollars
– Supported by Circle Account & its APIs… https://t.co/yCSf4gmaab— Polygon (Labs) (@0xPolygonLabs) September 28, 2023
From 10 October, USDC issued by Circle will be native to Polygon PoS and will be the official form of USDC for the ecosystem.
As per the official announcement, ahead of the launch of native USDC, the Ethereum [ETH]-bridged form of USDC on block explorers like PolygonScan will be renamed as USDC.e.
Native USDC liquidity will increase over time and eventually take the place of bridged USDC liquidity obtained from Ethereum using the Polygon PoS Bridge.
This will also provide several benefits, such as support by Circle Account and its APIs, enabling institutional on/off-ramps, and more.
However, it was surprising to see that while the blockchain was preparing to integrate USDC, the Development Activity metric dropped. The Dev. Activity Contributor Count metric also followed the same declining trend in the last week.
Source: Santiment
Moreover, Polygon PoS’s network activity has somewhat flattened over the last few months. This was evident from Artemis’ data, which showed that the blockchain’s daily active addresses and transactions failed to move up by a huge extent.
But once USDC gets integrated, the situation might change as it can lure new users onto the network.
Source: Artemis
MATIC is now registering gains
Thanks to the crypto market’s condition, MATIC’s price action turned bullish before the latest integration. According to CoinMarketCap, MATIC was up by more than 3% over the last seven days.
At the time of writing, it was trading at $0.5224 with a market capitalization of over $4.8 billion. Thanks to the price uptick, Polygon’s MVRV Ratio improved as well.
Read Polygon’s [MATIC] Price Prediction 2023-24
As per CryptoQuant, MATIC’s net deposits on exchanges were low compared to the last seven days’ average, meaning that it was not under selling pressure at press time.
Its Open Interest also increased while its price went up, which by and large suggested that the upward trend would continue. However, the uptick did not change MATIC’s weighted sentiment, which dropped in the last week.
Source: Santiment
